Private lenders have already put the brakes on the zero-down financing trolley, but the government is still chugging along. Nonprofit groups are still funneling cash toward first-time home buyers so they can qualify for a mortgage backed by the Federal Housing Administration. The above-average default rates for houses that sell under this arrangement are kicking the FHA's ass, though, and may force them to request a government subsidy for the first time ever. To be fair, they probably saw this coming. [WSJ]
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